“How do I get more customers?”
This is a common question that a marketer may ask himself. It doesn’t matter if you’re new to marketing or have been doing it for years, this question always remains on your mind explains Paul Haarman. New marketers might believe that the answer lies in having better products and services compared to the competition, but as one advances his knowledge on marketing, he quickly realizes that the real answer lies elsewhere.
In this article, we will discuss some of the reasons why companies choose their competitor over you and what actions can be done to prevent such situations from taking place. We’ll also see how knowing these reasons will help us become better at understanding our target audience and making decisions according to their needs and wants.
When a company decides to use your product, you can rest assured they wouldn’t have chosen someone else over you if there was no good reason for doing so says Paul Haarman. Knowing why customers buy from your competitors will help us make better decisions when creating our offers and in turn bring more customers to our business.
Now that we’ve established the importance of knowing this information, let’s look at the 3 main reasons why companies choose their competitor over you:
They offer a better value proposition you lack something that company X has they simply don’t know about you
Let’s discuss all 3 individually:
Number 1: They offer a better value proposition than you do
You might think that your product is superior to what competitor X has on offer yet despite such superiority people still choose company X over you. This is a clear indication that they believe company X has a stronger value proposition than what you have on offer, so you need to find out why that happens.
In some cases, your competitor may just be offering something that people want from company X whether it’s higher quality or lower prices. However, In such cases, the only way to win customers from competitor X is by creating a better value proposition instead of competing with them on their strong points. In other words, if people choose company X because of their superior quality and your product offers similar Quality but at a lower-Price, the solution is not lowering your Price further to win customers who prefer high-quality stuff but raising its Quality even further.
If this seems like a complicated thing to do, that’s because it is. You will need to put a lot of time into creating an offer. That you are confident people will prefer yours over your competitor X. But if you think about it, most of the big businesses serve their customers by offering them similar products or services under different value propositions — e.g. Apple selling iPhones at extremely high Prices with amazing Quality compared to Samsung selling their Phones for considerably lower prices but with average quality relative to what Apple has on offer on its expensive phones.
Number 2: You lack something that your competitor does on his product/service
The second reason you’re losing customers may be attributed to something that customer favors in the competition but not in your business explains Paul Haarman. This could be anything from shipping fees to payment methods accepted or refund policy. Any reason that customers consider important enough to choose the competition over you. Will be a big factor in determining why they are not choosing your business over the competition.
When customers are attracted by something on competitor X’s offer but disappointed with what you have. It means they might be willing to give their money to you only if you do something about it. Don’t wait for them too long and make them regret their decision; If competitor X is offering free shipping and paying extra is one of your customer’s concerns. Providing free shipping should solve this problem. Make him decide between two offers based on other factors such as Price and Quality.
Number 3: They don’t know about you
This is the third and final reason for people choosing not to buy from you. But it’s probably the easiest to fix. The best way to make up for this lack of knowledge is simply to market your business better. By investing more into your social media marketing efforts or maybe even buying Google Ads. By doing that, you’ll be able to convert more leads into customers. Beat the competition that doesn’t have a large enough online presence.
Always monitor what your competitors are doing so that you don’t miss out on something important says Paul Haarman. Once a customer bought from a competitor instead of you, ask yourself why did they choose him over you? Finding answers will help you improve your offer and bring more customers through your doors. This way, you can get rid of competition and start making more profits.
Once your business is established, make sure to monitor what new competitors are. Doing so that you don’t miss out on something important. Once a customer bought from a competitor instead of you, ask yourself why did they choose him over you? Finding answers will help you improve your offer and bring more customers through your doors. This way, you can get rid of competition and start making more profits.